south dakota redi fund - boardsandcommissions.sd.gov

JUNE 30, 2018 • ANNUAL FINANCIAL REPORT

REDI FUNDREVOLVING ECONOMIC DEVELOPMENT & INITIATIVE FUND

SOUTH DAKOTA

Board of Economic Development Members Jeff Erickson, Chairman, is currently owner of E&E Management, LLC, Manager of Border Plains, LLC, Chairman of The Schwan Company, and is a partner and Vice Chairman of the Board of American Bank & Trust. He was previously President and Chief Executive Officer of Great Western Bank. He is currently the Chairman of the South Dakota Banking Commission, Chairman of the Governor’s Office of Economic Development Board (REDI), and is Chairman of the South Dakota Community Foundation. He was the Chairman of Governor Dennis Daugaard’s Transition Team (2010). He has also served as Vice Chairman of the South Dakota Ellsworth Development Authority, Chairman of Focus Watertown and the Watertown Development Company and also has served as the President of the Watertown Area Chamber of Commerce and as a Board Member of the Sioux Falls Development Foundation. A graduate of Northern State University in Aberdeen, South Dakota, in 2008 he was named “Distinguished Alumni”. In addition, Jeff is a graduate of the Pacific Coast Banking School at the University of Washington in Seattle, Washington; and is a graduate of the University of Iowa Executive Development Program in Iowa City, Iowa. Mr. Erickson has worked in the financial services industry for 30+ years. He has been married to his wife, Linda, for 40 years and has four children and 11 grandchildren. In addition to enjoying time spent with his family, he enjoys sharing sporting events and pheasant hunting with friends and family. He and his family believe in giving back to the communities they live in by volunteering both time and money to worthwhile causes. Don Kettering, Vice-Chairman, is a South Dakota born, farm-raised, Brentford High School, Northern State College (BA) and South Dakota State University (MA) graduate. He trained in the United States Army and has worked in agricultural banking for the past 39 years. Mr. Kettering and his wife have two children and five grandchildren. He has lived and worked in the Yankton community for almost forty years. Mr. Kettering currently serves as a board member for the Economic Development Finance Authority and the Yankton County Commission and has been actively involved in economic development, infrastructure improvements, planning and zoning and the local Boys and Girls Club Board and Club activities. He enjoys hunting, fishing, golf, gardening, and woodworking as pastime activities. Working with community and State organizations that promote growth and opportunities for others has been very gratifying for him. Dr. Dale Clement, Secretary, graduated from Tarkio College in Missouri in 1954. He then served in the Army from 1955-1957. Dr. Clement earned a Masters of Arts degree in Finance from the University of Nebraska in 1958, followed by a PhD from the University of Nebraska-Lincoln in Finance in 1965. He was a professor of Finance at the University of South Dakota from 1963-1989 and was Dean of the Business School from 1968-1989. Dr. Clement served as Chief Financial Officer of Black Hills Corporation from 1989-1997. He was the Founding Director of the J T Vucurevich Foundation, where he has served as President from 1990 to present. Dr. Clement was awarded an Honorary Doctorate from Tarkio College in Missouri. The Dean's l-wing of the School of Business at USD was named in his honor for 26 years of service. He was named to the Board of Economic Development the day Governor Mickelson died. Dr. Clement and his wife Barbara have two children. Matt Judson, Treasurer, grew up in Pierre and attended T. F. Riggs High School. He attended USD for one year before finishing his college years at Augustana College, graduating with a double major in Accounting and Business Administration. After returning to Pierre, he worked for both the South Dakota Department of Revenue and a Pierre CPA firm. He started his employment with First National Bank in 1997 as a Commercial Loan Officer and was promoted to Branch President several years ago. He currently serves as a Board Member for Pierre BID #1, and previously served as Treasurer for the South Dakota Development Corporation and as a board member of the Pierre Economic Development Corporation. In 2014 and 2018, he and his wife, Stephanie, who currently serves as President of the South Dakota Community Foundation, were appointed by the Mayor as co-chairs for the City of Pierre’s hosting of the Inaugural events for the Governor and other state-wide elected officials.

Sharon Casey is an original member of the Board of Economic Development, appointed by Governor Mickelson. She is a businesswoman, formerly co-owner of Casey Drug and Jewelry and serves as a board member for the Economic Development Finance Authority. Sharon remains active in her local community, including as a board member of the Lake Francis Case Development, a council member and a building committee member of the St. James Catholic Church, and a member of the Kiwanis Club. She also has served on the board of the South Dakota Art Museum, Employer Support for the Guard Reserve (ESGR), and is a past President of the Chamberlain Chamber of Commerce. Sharon placed foreign exchange students and teachers with Youth for Understanding from 1971 to 1980. During that time they hosted exchange students from Brazil, Yugoslavia, Norway, Philippines, Holland and France. Sharon attended South Dakota State University. Sharon and her husband now enjoy catching up on the activities of their four children, 12 grandchildren and 3 great grandchildren and taking in frequent travels. Mike Luken is a native of Watertown, South Dakota. He has been involved in farming in Northeast South Dakota, custom combining, and reconditioning the former Memorial Hospital to develop affordable housing in the community. He has also started numerous businesses that include a tanning salon, Glacial Lakes Bottling and Marketing, and Express Photo with locations in both Watertown and Sioux Falls. Mr. Luken was also part of the Discount Farm Center and later was hired by ABT to manage the operation. Currently Mr. Luken sells real estate for Hoftiezer Real Estate in Watertown. He is a past chairman of the Board for the Watertown Area Chamber of Commerce, serves on the Lake Area Tech Foundation Board and was appointed to the Watertown Municipal Utilities Board by Mayor Gary Williams. Current Mayor Steve Thorson also re-appointed Mr. Luken to serve another 5 year term to the Watertown Municipal Utilities Board and is the current President. Mr. Luken is also involved in many other civic and private organizations. He has one daughter, Jennifer, and a son-in-law, Chris Loiseau, and a 14 year old granddaughter. John Calvin is currently the CEO and sole owner of J. Scott Industries, an operating company in Watertown that makes significant investments in and helps small businesses. Before starting J. Scott Industries, Mr. Calvin owned Angus Palm Industries in Watertown, which he later sold to the employees. Angus Industries was approved for the first REDI Fund loan in 1987. This company manufactures quality roll-over protective systems, cabs and custom steel fabrications. Mr. Calvin held many Senior Executive positions in the Lockheed Martin Corporation, along with positions in other publicly traded companies. Throughout his career, he has been involved in countless other business ventures. He received high Masonic honors in both Scottish Rite and York Rite. Mr. Calvin served as the cabinet secretary of the Office of Tourism and State Development from April 2003 to December 2003. Currently, he is a member of the Board of Directors of Prairie Lakes Healthcare System. Mr. Calvin is a graduate of the University of Michigan with a degree in pre-law studies; he also completed graduate seminars at Columbia and Rutgers Universities. Pat Prostrollo was born and raised in Madison, SD and graduated from USD in 1975. After college he moved to Couer d’ Alene, Idaho and worked for a year and a half. In 1976 he joined his father, Jerry Prostrollo in the automobile business in Madison, SD. In 1982 he purchased the Chevrolet/Buick dealership in Huron SD and 10 years later he moved back to Madison and became a partner with his father in their GM-Chrysler-Ford dealerships. In 1995 Mr. Prostrollo purchased the GM-Ford-Chrysler dealerships from his father and still owns them today. He and his wife Deb and have 2 grown children and 5 grandchildren. Ted Hustead is the former President of Wall Drug Store. He graduated from the University of North Dakota in 1980 with a BA Degree in Political Science and Economics. He also successfully completed the 3 year OPM Program at Harvard Business School. Mr. Hustead also serves on the Governor’s Tourism Board and enjoys being involved in South Dakota politics. He is a former board member of the South Dakota Hall of Fame. Mr. Hustead is married to his wife Karen and they have two children Willie and Lane, and lives in Wall, South Dakota. He believes that, “South Dakota is a great place to raise a family, be in business, and retire.”

Tom Jones is the previous owner of Jones’ Food Centers in Viborg, Lake Andes, Alcester, Springfield, Parker, Vermillion and Missouri Valley, IA. Mr. Jones graduated from Huron College in December 1962 with a degree in Bachelor of Arts and in May of 1969 from South Dakota State University with a Master’s Degree in Education Administration. Mr. Jones also was previous owner of Sunny Side Plaza in Hartford, Southeastern Overhead Door, Ltd in Mitchell and Beresford and Dakota Ace Hardware in Viborg. Tom currently serves as a board member for the Economic Development Finance Authority and has previously served as a Viborg City Council Member, Chairman of the Viborg Economic Development Board, 4-H Turner County Horse Leader, Chairman of the South Dakota 4-H Horse Board, Active Money Raiser for Make-A-Wish, South Dakota Sports Hall of Fame Advisory Board, South Dakota Hall of Fame Board Member, South Dakota Rodeo Association Board, United States Team Penning Association Board, National Cutting Horse Association, Masonic Member of Joppa Lodge, El Riad Shrine Member, South Dakota House of Representatives from 2011-2012 and the South Dakota Senate from 2012-13. He also has served as a head and assistant basketball coach at the college and high school level. Mr. Jones has also been named Business Man of the Year, is in the Huron College Hall of Fame, was an All American College Football player, and was Coach of the Year at the college and high school levels. He and his wife Linda have 2 daughters and 5 grandchildren. Norbert Sebade graduated from BHSU with a degree in Business Administration. He spent 43 years in banking and retired in 2010 as Regional President of First Interstate Bank. Mr. Sebade has served on the Children's Home Foundation and South Dakota Community Foundation and is the Chairman of the South Dakota Health & Education Authority and also serves on the Children’s Home Society Board and the First Interstate Greater Wall Foundation. He and his wife Jane have two children and two grandchildren. Reed Kessler is owner, EVP, and COO of Kessler’s Inc. in Aberdeen, SD. He was not only born and raised in Aberdeen, SD, but also brought up in the family business of retail. After graduating from Roncalli High School, he attended Saint John’s University in Minnesota. While at Saint John’s, he studied Economics, Entrepreneurship, and Classical Guitar. He was also able to spend time living and studying business in China. Mr. Kessler graduated Magna Cum Laude with a Bachelor of Arts Degree. While living in Minnesota, he spent a number of years working with Coborn’s Inc., Northwestern Mutual, and Associated BankCorp. In late 2008, he and his wife, Kristina, returned to South Dakota, and he dove head first back into the family business. Under his leadership, Kessler’s Inc. has grown to include new investments in fuel, pharmacy, and real estate around the state. Reed currently is a board member with the National Grocers Association and Board President of the Aberdeen YMCA. He and Kristina are raising a family of their own which includes four beautiful children. J. Pat Costello currently serves as the Vice President of Schoeneman Bros. Co. in Sioux Falls. In his role as vice president, Costello oversees the operations of the company’s four lumber yards. Prior to that, Costello served as the Commissioner of the South Dakota Governor's Office of Economic Development (GOED) from 2011-2016. He was also a member of Governor Dennis Daugaard's six-person Executive Committee. Costello began his professional career as a Certified Public Accountant working with firms in both Arizona and South Dakota. In addition to his work as a CPA (inactive), over the past 27 years Costello has operated small businesses including Fuddruckers restaurants in Sioux Falls and Omaha, Borrowed Buck's Roadhouse in Sioux Falls, and Timber Lodge Steakhouse in Omaha. Costello past community involvement includes the Board of Directors for Children's Care Hospital and School, the Sioux Falls City Council from 2006-2010 (serving as Chairman of the city council from 2009-2010) and numerous volunteer committees of various nonprofit organizations. Costello currently serves as a Board Trustee for the Avera McKennan Hospital & University Health Center, Board Secretary for the Sioux Falls Development Foundation, member of the Dean’s Advisory Board for the Beacom School of Business at the University of South Dakota, member of the Issues Management Committee for the Sioux Falls Chamber of Commerce and member of the Local Government Affairs Committee for the Sioux Empire Home Builders Association. Costello is a graduate of Sioux Falls O'Gorman High School and Arizona State University. Costello and his wife, Shawn, have three children.

Non-Voting Legislative Members Spencer Hawley is the owner of Hawley Insurance Services in Brookings, SD and has been in the insurance business for 42 years. He is a graduate from South Dakota State University. Mr. Hawley is retired from the military after serving 30 years with the South Dakota Army National Guard, and attaining the rank of Colonel. He was appointed to the SD Game, Fish and Parks Commission from 2003 to 2010 and served as chair. Mr. Hawley's many civic affiliations include Past President of the Brookings Chamber of Commerce committee; Past President of the SD Parks and Wildlife Foundation and Past President of the Brookings Economic Development Corporation. He was elected to the SD House of Representatives in 2010 and currently is in his 4th term. Representative Hawley is the House Minority leader and is on the House State Affairs and House Commerce and Energy Committees and SD Legislative Executive board. He and his wife, Barbara Ann, have four children and 6 grandchildren. Billie H. Sutton a fifth generation South Dakotan, grew up on his family's ranch northeast of Burke, SD. He was valedictorian of his Burke High School graduating class and attended the University of Wyoming in Laramie on a full-ride rodeo scholarship and earned his bachelor’s degree in Business Finance. Billie went on to rodeo professionally and was in the top 30 in the world in the professional rodeo ranks. Billie’s rodeo career was cut short when he was paralyzed in a rodeo accident while competing at the Circuit Finals Rodeo. Billie resides in his hometown of Burke, SD. He still rides horses and has a cattle operation with his family. Billie previously served as manager of the South Central South Dakota Hay Association and now works for First Fidelity Bank as an Investment Executive. Billie was elected to the State Senate in 2010 and is now in his fourth term representing District 21. Billie has also served three years as the Senate Minority Leader. Billie is married to Kelsea Kenzy Sutton, an attorney with First Fidelity Bank and County Commissioner in Gregory County. Billie and Kelsea also have a young son named Liam. Lee Qualm, who was born and raised west of Platte, SD has been serving in the SD House of Representatives since 2013 and is serving as the House Majority Leader since 2017. Lee serves on the Ag Land Task Force, the Executive Board, the State Affairs Committee and was Chairman of the Non-meandering Waters Task Force in 2018. Prior to being elected as House Majority Leader, Lee served as Chairman of the Ag and Natural Resources Committee. Lee is a 4th generation farmer and continues to manage and operate the family owned farm in a cash grain business. Lee attended Mitchell Technical Institute where he graduated with a degree in Ag Business Management. Lee and Trudy built, owned and managed Gramps Lodge, River Bluff Adventures, west of Platte for 12 years prior to getting involved in Legislature. Lee was a Founding Board Member of the SD Corn Growers serving as President in ’91-’92. He has served on the local Co-op and Farm Bureau boards in the past. He served as President of his church during a fund raising and building project which was completed in 2000. Lee has in the past been a church youth group leader, played baseball for many years as catcher and has coached baseball and softball. Lee and his wife Trudy have 4 married children and 12 grandchildren.

Dr. R. Blake Curd, MD, is a board certified Orthopedic surgeon specializing in hand, upper extremity and microvascular surgery. Dr. Curd graduated from University of Missouri at Kansas City School of Medicine, performed his residency at the Orthopedic Surgery Wilford Hall Medical Center and completed a fellowship in hand, upper extremity and microvascular surgery at the Indiana Hand Center. In addition to his work as a physician at the Orthopedic Institute of Sioux Falls, Dr. Curd is the associate team physician for the Sioux Falls Stampede and Sioux Falls Canaries. He also serves as the president elect of Physician Hospitals of America, is Chairman of the Board for the Surgical Management Professionals and is a Board Member of Medical Facilities Corporation. Dr. Curd is currently a South Dakota State Senator and serves as the Majority Leader.

Loan PortfolioBoard of Economic Development ActivityLoans Approved Fiscal Year 2018

COMPANYPROJECTED

JOBSREDI FUND LOAN

AMOUNTTOTAL PROJECT

AMOUNT COMMUNITY

Acquisition Group III, LLC** 201 $3,099,384.00 $9,633,845.00 Rapid City

Century Custom Molding, Inc. 23 $520,000.00 $1,156,000.00 Beresford

Dak Pak, LLC 53 $1,080,000.00 $2,400,000.00 Woonsocket

Doyle Family Land Company, LLC* 33 $1,755,000.00 $3,900,000.00 Sioux Falls

Farmers Union Industries, LLC 30 $3,600,000.00 $12,400,000.00 Mitchell

Fiedler Holdings, LLC 26 $1,152,338.00 $2,560,750.00 Yankton

Harvard Integrations, LP*** 16 $716,000.00 $1,790,000.00 Tea

Harvard Integrations, LP see above $1,332,800.00 $3,332,000.00 Tea

Intrinsic Materials Corp. 34 $2,546,302.00 $5,658,450.00 Rapid City

Intrinsic Materials Corp.** see above $1,131,750.00 $2,515,000.00 Rapid City

JMo Holdings, LLC 50 $3,600,000.00 $8,000,000.00 Dakota Dunes

LD Development, LLC (Roto Mold) 44 $256,500.00 $780,000.00 Tea

LD Development, LLC (Roto Mold) see above $170,000.00 $680,000.00 Tea

Masaba, Inc. 30 $540,000.00 $1,361,411.00 Vermillion

O'Connor Kiln & Dryer, Inc. 12 $440,196.00 $1,760,782.00 Burbank

R & R Holdings, LLC* 40 $900,000.00 $2,000,000.00 Watertown

The Three Amigos, LLC 27 $654,433.00 $1,636,081.00 Dakota Dunes

Vantage Point Solutions, Inc. 45 $1,350,000.00 $3,000,000.00 Mitchell

Vermillion Area Chamber of Commerce & Development Company (IP USA) ** 54 $1,696,500.00 $3,768,000.00 Vermillion

FY 2018 Total: 19 loans 718 $26,541,203.00 $68,332,319.00

**Applicant withdrew subsequent to Fiscal Year End 2018

***Approved for $600,000 in November, the amount increased subsequent to Fiscal Year End 2018

*Applicant was approved and withdrew during Fiscal Year End 2018

REDI Fund Company Activity September 1987 through June 2018

ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsAURORAB&H Holding Company $108,000 $243,000 24.00Pure Pulp Products, Inc. $1,375,000 $5,972,000 166.00

$1,483,000 $6,215,000 190.00BEADLEAmerican Foods Group, Inc. I $500,000 $7,790,000 116.00American Foods Group, Inc. II/Huron $279,400 $1,220,000 57.00American Foods Group, Inc. III/Huron $500,000 $1,750,000 146.00Dakota Turkey Growers, LLC $3,000,000 $58,450,000 387.00Dak-Lan, LLC $194,527 $1,029,241 7.00Horizontal Machining & Mfg $700,000 $2,268,430 35.00Huron Manufacturing Company $65,000 $200,000 12.00Industrial Manufacturing of SD, Inc. I $275,000 $700,000 35.00Industrial Manufacturing of SD, Inc. II $420,413 $973,761 54.00Industrial Manufacturing of SD, Inc. III $650,000 $2,030,000 60.00Midcom, Inc. $600,000 $2,155,000 167.50Overbuilt, Inc. $750,000 $3,341,908 72.00Prairie Trends, Inc. $50,000 $300,000 17.00Protective Coating Specialists, Inc. $100,000 $240,000 30.00Raven Industries, Inc. II/Huron $245,000 $1,855,000 50.00Riverside Manufacturing LLC $300,000 $950,000 60.00Shallbetter, Inc. $144,000 $320,955 63.00Trussbilt, Inc. I $700,000 $3,223,000 151.00Trussbilt, Inc. II $315,000 $1,450,000 54.00

$9,788,340 $90,247,295 1,573.50BON HOMMEBroin Enterprises, Inc. $112,000 $312,000 14.00Rush Company $750,000 $2,014,250 36.00

$862,000 $2,326,250 50.00BROOKINGSBel Brands USA, Inc. (2 loans) $8,000,000 $166,920,000 365.00Biogenetics Services, Inc. $131,988 $560,000 14.50Brookings Economic Dev. Corp/Agriculture Technology Center $550,000 $3,465,000 11.00Counterpart, Inc. $175,000 $1,480,000 35.00Counterpart, Inc. #3 $558,775 $2,205,745 60.00Dakota Services, LLC I $150,000 $535,000 29.00Dakota Services, LLC II $200,000 $787,000 39.00Daktronics, Inc. I $112,500 $250,000 33.50Daktronics, Inc. II $400,000 $900,000 96.00Falcon Plastics, Inc III $348,000 $3,620,000 50.00Larson Manufacturing, Inc. I $750,000 $3,056,901 92.00Larson Manufacturing, Inc. II $750,000 $2,350,000 87.00Larson Manufacturing, Inc. III $1,500,000 $6,270,000 191.00Larson Manufacturing, Inc. IV $1,500,000 $4,300,000 300.00Lomar Development Company, LLP $1,023,750 $2,600,000 50.00Maize Properties, Inc. I $50,000 $340,786 16.00

*Approved, not yet Funded** Funded Subsequent to Year End

REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsBROOKINGS(Con't.)Maize Properties, Inc. II $126,450 $281,000 24.00Maize Properties, Inc. III $208,000 $603,441 19.00Measurement Technologies $100,000 $800,000 16.00Metalworks, LLC $500,000 $1,600,000 25.00Prince Manufacturing Corp. $400,000 $2,750,000 50.00Rainbow Play Systems, Inc. $400,000 $2,954,500 83.00Rainbow Play Systems, Inc. II $1,500,000 $6,500,000 100.00RTI, LLC/NEVCO, LLC $250,000 $570,000 7.50RTI, LLC/RTI Holdings, LLC $825,000 $3,300,000 11.50Sitel Corporation $157,500 $349,500 104.50South Dakota Soybean Processors $1,050,000 $37,700,000 68.00TCF Industries, Inc. $200,000 $937,500 61.50TCF & Blower II $850,000 $3,700,000 170.00Twin City Fan Companies, LTD #2 $233,564 $519,032 25.00

$23,000,527 $262,205,405 2,234.00BROWNAberdeen Development Corporation/Four Star Plastics (I) $75,000 $250,000 27.50Aberdeen Development Corporation/Four Star Plastics (II) $1,350,000 $3,200,000 N/AAberdeen Development Corporation/Verifications $1,000,000 $3,000,000 200.00Aberdeen Development Corporation/Progressive Financials (I) $300,000 $730,000 100.00Aberdeen Devlopment Corporation/Coventry Health $1,600,000 $3,600,000 200.00Aberdeen Development Corporation/MFG $4,500,000 $21,218,869 708.00Aberdeen Development Corporation/Progressive Financials (II) $100,000 $300,000 40.00Aberdeen Development Corporation/Magnum Trucking $350,000 $1,450,000 15.00Cabinets Dakotah $25,000 $60,000 6.00Colorworks, LLC $50,000 $410,000 18.00FMC Corporation $200,000 $410,000 18.00Glacial Lakes Energy, LLC $1,215,000 $2,750,000 N/AMidcom, Inc. II $1,000,000 $410,000 18.00Midstates Printing, Inc. $100,000 $410,000 18.00Midstates Printing, Inc. #3 $1,000,000 $3,350,000 129.00Mutual of Omaha Insurance Co. $675,000 $410,000 18.00Natural Dakota Soy, LLC $495,000 $1,100,000 10.00NE Venture, Inc. I $166,667 $1,200,000 106.00NE Venture, Inc. II $233,333 $600,000 41.00NECOG-DC (RRLF) $500,000 $410,000 18.00Sheldahl, Inc. $1,000,000 $2,850,000 50.00TCF Aerovent, Inc. $500,000 $8,735,000 186.00Tempus Nutritionals, Inc. $210,000 $545,000 30.00Western Printing $100,000 $555,000 65.00

$16,745,000 $57,953,869 2,021.50BRULELake Francis Case Dev. Co./A Square $300,000 $675,072 24.00

$300,000 $675,072 24.00CHARLES MIXAristo Industries, Inc. $41,000 $91,500 20.00Boyd’s Gunstock Industries, Inc. I $35,000 $155,000 15.50Boyd’s Gunstock Industries, Inc. II $40,000 $88,900 17.00Dakotah, Inc. III $300,000 $3,070,000 60.00Filters Co., Inc. $200,000 $600,000 50.00

$616,000 $4,005,400 162.50


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsCLAYPerformance Engineering and Manufacturing, Inc. I $125,000 $800,000 30.00Performance Engineering and Manufacturing, Inc. II $180,000 $2,340,083 40.00JH Investments, LLC $1,250,000 $4,095,000 25.00JH Investments, LLC II $1,200,000 $3,250,000 50.00Masaba, Inc.* $540,000 $1,361,411 30.00O'Connor Kiln & Dryer, Inc.* $440,196 $1,760,782 12.00Vermillion Area Chamber & Development Company $2,764,428 $4,760,131 50.00

$6,499,624 $18,367,407 237.00CODINGTONAngus-Palm Industries, Inc. I $465,000 $1,998,000 170.00Angus-Palm Industries, Inc. II $465,000 $1,850,000 69.00Angus-Palm Industries, Inc. III $289,000 $1,026,520 55.00Angus-Palm Industries, Inc. IV $975,000 $3,080,000 324.00Benchmark Foam, Inc. $1,500,000 $4,602,628 12.00BVH, LLC $110,000 $367,500 18.00CMW Industrial Properties, LLC $900,000 $5,900,000 30.00CurMar, LLC $778,257 $2,269,221 50.00DBI Holdings, LLC $500,000 $1,930,000 45.00DBI Holdings, LLC $2,178,500 $4,696,175 115.00Dakota Bodies, Inc. $78,000 $177,709 19.00Dakota Finishing Co. $55,000 $125,000 12.00Dakota Tube, Inc. I $137,106 $357,680 27.00Dakota Tube, Inc. II $350,000 $770,000 60.00Dakota Tube, Inc. III $200,000 $650,000 41.00Dakota Tube, Inc. IV $250,000 $575,000 50.00DC Machining, Inc. $51,795 $115,100 18.00Duralite, Inc. $75,000 $325,000 16.50Dynamic Engineering $220,568 $505,235 45.00ESCO Mfg., Inc. $158,000 $383,700 34.00First District Dev. Corp. $500,000 500,000 N/AGlobal Technologies, Inc. $186,975 $415,500 23.00Hesco, Inc./Specialty Mills $87,000 $389,000 15.50Integrity Tool and Die, Inc. $125,000 $300,000 30.00McFleeg of South Dakota $300,000 $3,981,025 10.00MidAmerica Mutual Life Insurance Co. $500,000 $2,068,500 125.00Moffatt Products, Inc. $579,900 $1,822,700 7.00OEM $650,000 $3,050,000 123.50OEM II $1,500,000 $7,530,000 102.00Persona, Inc. $281,700 $736,600 82.00PREMIER Bankcard, Inc. $1,175,000 $4,516,000 398.50R & R Holdings, LLC $606,000 $1,515,000 30.00Superior Homes, LLC $500,000 $2,600,000 30.00Terex-Telelect, Inc. $500,000 $16,400,000 100.00Tower Systems, Inc. I $135,000 $550,000 32.50Tower Systems, Inc. II $90,000 $200,000 18.00Twin City Die Castings Co. $500,000 $1,145,000 125.00Watertown Development Corp./Verifications (I) $1,250,000 $2,500,000 112.00Watertown Development Corp./Glabal Tech (II) $75,000 $332,000 35.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsCODINGTON(Con't.)Watertown Development Corp./Dakota Bodies (III) $295,000 $883,713 54.00Watertown Development Corp./AcroTech Midwest) (IV) $1,910,000 $14,545,340 157.00Watertown Development Corp./Nutting (V) $1,550,000 $4,686,035 30.00

$23,032,801 $102,370,881 2,850.50CUSTERPacer Corporation #2 $450,000 $1,113,000 19.00

$450,000 $1,113,000 19.00DAVISONAmerican Foods Group, Inc. II/Mitchell $220,600 $1,220,000 45.00American Foods Group, Inc. III/Mitchell $250,000 $850,000 62.00Boyd’s Gunstock Industries, Inc. III $125,000 $325,200 25.00Boyd’s Gunstock Industries, Inc. IV $135,000 $449,400 28.00Boyd’s Gunstock Industries, Inc. V $250,000 $919,615 50.00Dealer’s Livestock Eqp. Center, Inc. $220,000 $600,000 33.00EMI, LLC $750,000 $3,080,000 30.00Farmers Union Industries, LLC* $3,600,000 $12,400,000 30.00Mitchell Area Dev. Corp./Verifications $700,000 $2,240,000 150.00TCF Industries, Inc./Axial Division $558,800 $3,279,800 85.00TCF & Blower Co., LTD $300,000 $3,300,000 60.00Thermoset Products, Inc. $1,100,000 $3,400,000 50.00Trail King Industries, Inc. $125,000 $2,251,900 165.00Trail King Industries, Inc. II $250,000 $633,560 113.50Vantage Point Solutions $1,000,000 $4,000,000 46.00Vantage Point Solutions* $1,350,000 $3,000,000 45.00Yelroc Neuro, Inc./eyeBrain Medical, Inc. $181,102 $465,529 11.00

$11,115,502 $42,415,004 1028.50DAYDakota Fiberglass, Inc. $150,000 $376,000 19.50Dakotah, Inc. I $54,000 $120,000 39.00Dakotah, Inc. IV $730,000 $1,967,250 146.00ESCO Manufacturing, Inc. II $127,000 $982,912 30.50Steelworks, Inc. $90,000 $235,000 19.00Webster Area Development Corp. I $300,000 $600,000 38.00Webster Area Development Corp. II $322,000 $600,000 55.00

$1,773,000 $4,881,162 347.00DEUELMidwest Converter Supply, Inc. $120,000 $334,689 23.00SFI Machine Products, Inc. $123,000 $423,500 19.00TTJ Properties, LLC $300,000 $912,705 16.00

$543,000 $1,670,894 58.00DEWEYLakota Archery, LLC $100,000 $265,075 16.00

$100,000 $265,075 16.00DOUGLASPrairie States Equipment/Petro-Steel, Inc. $156,000 $352,000 23.00Werkmeister Welding $300,000 $800,000 28.00

$456,000 $1,152,000 51.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount Jobs

FALL RIVERArt Advantage, Inc. $275,000 $656,000 35.00Dakota Cinch, Inc. $150,000 $610,000 64.00Mineral Technology Corporation $120,000 $985,000 15.00Westrom $208,250 $595,000 17.00

$753,250 $2,846,000 131.00GRANTBER Communications Corp. / Midwest Card Services $185,000 $428,000 110.50Dakota Granite $350,000 $2,153,522 60.00Dakotah, Inc. II $100,000 $350,000 80.00Medware of SD/Mikros USA, Inc. $250,000 $804,000 75.00Montage, Inc. I $70,000 $225,000 14.00Montage, Inc. II $240,000 $511,505 30.00Sleepy Hollow Millwork $196,000 $600,000 60.00United Hardware Distributing Co. I $2,250,000 $23,000,000 188.00United Hardware Distributing Co. II $60,000 $250,000 12.00

$3,701,000 $28,322,027 629.50GREGORYParker Enterprises, Inc. $100,000 $366,000 50.00Ranchers Welding $500,000 $1,533,000 30.00

$600,000 $1,899,000 80.00HAAKONMidland Telemarketing $30,000 $70,000 13.50Scotchman Industries, Inc. $125,000 $845,000 17.00

$155,000 $915,000 30.50HAMLINDavis Family South Dakota Inc. $5,000,000 10,000,000 184.00Davisco International, Inc. $300,000 $1,233,000 21.00

$5,300,000 $11,233,000 205.00HANSENSD Industries, Inc. (2 loans) $639,637 $1,421,415 17.00

$639,637 $1,421,415 17.00

HUGHESGlobal Harvest Birdseed of SD, LLC $450,000 $1,150,000 37.00JR&R Partnership $180,000 $527,000 16.00MW Properties, LLC $700,000 $2,913,308 17.00Pierre Economic Development Corp./ESI, Inc. $440,000 $1,100,000 100.00Pierre Economic Dev. Corp./Eagle Creek $2,000,000 $5,259,300 157.00Pierre Economic Dev. Corp./SD Pulse Processors $360,000 $850,000 18.00

$4,130,000 $11,799,608 345.00HUTCHINSONMDS Manufacturing Company, Inc. $300,000 $1,274,213 48.00MDS Manufacturing Company, Inc. II $600,000 $2,323,851 40.00Reliance Parts Corp. $99,000 $220,000 24.00Wildcat Manufacturing Co., Inc. $100,000 $332,500 23.00Wildcat Mfg./Freeman Supply $184,500 $1,016,750 38.00

$1,283,500 $5,167,314 173.00HYDEHighmore Cattle Auction $100,000 $535,000 29.00

$100,000 $535,000 29.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsJERAULDLSI, Inc. $800,000 $2,130,000 100.00LSI, Inc. II $750,000 $3,800,000 40.00

$1,550,000 $5,930,000 140.00KINGSBURYAlvord-Polk, Inc. $130,000 $1,060,000 28.00Arlington Development Corp. $163,000 $388,800 23.00CMI Architectural Products, Inc. $100,000 $1,100,000 20.50GeoFurnace Manufacturing, Inc. $182,480 $597,180 24.00Lyle Signs, Inc. $110,000 $275,000 15.00Shinamerica, Inc. $250,000 $1,400,000 45.00Shinamerica, Inc. $446,850 $998,880 20.00D.T. Holding Company, Inc. $380,000 $2,372,875 38.00

$1,762,330 $8,192,735 213.50LAKEBaron Investments, LLC $100,000 $1,062,000 20.00Custom Touch Homes, LLC $720,000 $2,489,000 48.00Falcon Plastics, Inc. I $400,000 $1,350,000 55.50Falcon Plastics, Inc. II $125,000 $636,541 25.00Gehl Company $255,000 $2,504,831 51.00Integra Plastics, Inc. I $140,000 $625,000 28.00Integra Plastics, Inc. II $75,000 $175,000 15.00Integra Plastics, Inc III $181,000 $753,840 20.00Integra Plastics, Inc. IV $1,000,000 $9,581,700 26.00Lake Area Improvement Corp./Persona (I) $262,500 $625,000 70.00Lake Area Improvement Corp./Madison Tech Center (II) $265,000 $1,165,000 30.00Lake Area Improvement Corp./Gehl (III) $247,500 $550,000 25.00Lasercut $90,000 $200,000 20.00May & Scofield, Inc. $140,000 $580,000 30.00New Custom Touch Homes, Inc. I $125,000 $280,000 25.00New Custom Touch Homes, Inc. II $75,000 $280,000 15.00Paragon Custom Homes, Inc. $168,000 $567,125 30.00Persona, Inc. II $450,000 $2,253,000 90.00PPD USA, INC. II $50,000 $645,600 10.00PPD USA, INC. (UHMW) $100,000 $1,153,100 12.50Raven Industries, Inc. $400,000 $3,155,000 90.00Rosco Manufacturing Company $200,000 $950,000 40.00Rosebud Manufacturing Co., Inc. II $234,500 $1,119,000 17.00Streff Properties, LLC $234,000 $520,000 11.50

$6,037,500 $33,220,737 804.50LAWRENCEDeadwood Central RR Co. $80,000 $235,000 13.00F.L. Thorpe & Co., Inc. $256,500 $713,000 70.00Gems By Jim, Inc. $100,000 $460,000 20.00Lehman Trikes, USA $1,150,000 $3,903,000 52.00M&D Investment Group, LLC $201,330 $948,700 14.00NIP Manufacturing, Inc. $75,000 $388,500 10.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsLAWRENCE(Con't.)OEM Worldwide II $1,250,000 $11,195,170 310.00Paramount Technical Products $130,000 $742,163 31.00PG Technology $500,000 $2,500,000 50.00Precision Blending of Idaho $405,000 $850,000 15.00RAMVAC Corporation $100,000 $550,000 12.00Spearfish Economic Development Corp. $1,000,000 $3,025,374 277.00Tri-State, LTD. $208,000 $620,000 35.00

$5,455,830 $26,130,907 909.00LINCOLNAdams Holding, LLC $1,206,067 $2,680,149 33.00Agile Manufacturing, LLC $684,968 $3,955,500 25.00Canton Economic Development Corp. /Adams Holdings, LLC (I) $1,250,000 $6,200,000 150.00Canton Economic Development Corp./Adams Holdings, LLC (II) $995,000 $5,852,000 70.00Canton Economic Development Corp./Adams Holdings, LLC (III) $1,575,000 $4,775,000 89.00Canton Economic Development Corp./Adams Holdings, LLC (IV) $1,600,000 $3,600,000 146.00CMI Terex Corporation $2,205,000 $4,860,000 6.00Century Custom Molding, Inc.** $520,000 $1,156,000 23.00DeGeest Manufacturing Co. $50,000 $210,000 12.00Harvard Intregrations, LP* $716,000 $1,790,000 16.00Harvard Intregrations, LP (II)* $1,332,800 $3,332,000 see aboveK-Products, Inc. $500,000 $3,450,000 100.00Kerry K Engle Separate Property Trust $607,500 $1,350,000 40.00Lennox Area Dev. Corp. (WARE Mfg.) (Parkview) $750,000 $4,650,000 100.00LD Development, LLC (Roto Mold) $256,500 $780,000 44.00LD Development, LLC (Roto Mold) (II) $170,000 $680,000 see aboveOmega Liner Company, Inc. $888,750 $1,975,000 10.00Omega Liner Company, Inc. (II) $508,750 $2,035,000 see aboveShowplace Wood Products, Inc. (I) $500,000 $2,482,900 99.00Showplace Wood Products, Inc. (II) $464,801 $1,401,779 65.00Showplace Wood Products, Inc. (III) $320,500 $1,627,529 308.00Showplace Wood Products, Inc. (IV) $500,000 $2,731,794 173.00Showplace Wood Products, Inc. (V) $500,000 $2,388,722 163.00Showplace Wood Products, Inc. (VI) $278,100 $618,000 168.00Tea Industries, Inc. $150,000 $333,000 80.00Weisser Properties, LLC $945,000 $2,100,000 20.00Weisser Properties, LLC (II) $180,000 $400,000 10.00

$19,654,736 $67,414,373 1,950.00MARSHALLSheldahl, Inc. $750,000 $2,850,000 150.00Truss-Pros, Inc. $171,000 $575,000 13.75Veblen Cheese Factory, Inc. $292,500 $650,000 33.00

$1,213,500 $4,075,000 196.75MCCOOKBridgewater Quality Meats $250,000 $965,000 50.00Buhler Industries, Inc. $1,300,000 $3,000,000 47.00Feterl Acquisition Corporation $600,000 $3,174,000 83.00Rosebud Manufacturing Company, Inc. $100,000 $371,750 19.50

$2,250,000 $7,510,750 199.5MCPHERSONDay Break, Inc. $25,000 $50,000 17.50Eureka Development Corporation/Connect (I) $290,000 $390,000 71.00Eureka Development Corporation/Addax (II) $125,000 $473,000 160.00

$440,000 $913,000 248.5MEADECor-Bon Bullets, Inc. $60,000 $455,000 36.00Glenwood/Loan Tree $13,500 $30,000 6.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsMEADE(Con't)Sturgis Industrial Dev. Corp./Galena Industries (I) $175,000 $362,500 25.00Sturgis Industrial Dev. Corp./CycleGreen Corporation (II) $300,250 $709,300 98.00Sturgis Industrial Dev. Crop./Dakota Arms, Inc. (III) $110,000 $308,000 12.00Tower Stools $25,000 $100,000 11.00

$683,750 $1,964,800 188.00MINERJan’s Frozen Foods $325,000 $1,630,000 67.00WrapIt Corporation $100,000 $2,811,160 90.50Miner Co. Revitalization $725,000 $1,647,296 46.00WM3D SD Properties, LLC $468,750 $800,000 63.00

$1,618,750 $6,888,456 266.50MINNEHAHAAmerican Western Corporation $450,000 $1,000,000 90.00AmeriPharm Inc. $1,000,000 $4,750,000 201.00Bell Paper Box, Inc. $200,000 $750,000 66.00Bellmark Properties, Inc. $778,000 $1,731,000 95.00Carl V. Carlson $1,420,000 $4,696,175 30.00Central States Fire Apparatus, LLC $400,000 $1,183,000 45.00Component Manufacturing Company $240,000 $600,000 37.00Crimson Fire, Inc. $1,250,000 $3,075,500 15.00Del’s Cabinets, Inc. $45,000 $100,000 12.50Design Tanks, Inc. $900,000 $2,013,750 58.00Dressen Custom Trailers, Inc. $73,636 $298,636 15.00Electronic Systems, Inc. I $245,000 $545,000 39.00Electronic Systems, Inc. II $305,000 $1,255,000 61.00Elston Equipment, Inc. $33,750 $75,000 14.00Forever New (Neoventures), Inc. $40,000 $110,000 8.50Gateway, Inc. IV $2,000,000 $14,840,000 645.00Graco, Inc. $750,000 $8,442,000 119.00Harbor Group Investments, LLC $810,000 $1,900,000 59.00Harbor Group Investments, LLC (II) $1,613,000 $4,032,500 30.00Hematech, LLC I $200,000 $835,000 30.50Hematech, LLC II $325,000 $709,600 21.00High Performance Engineering $67,000 $165,000 10.00Hutchinson Technology, Inc. I $1,500,000 $3,500,000 350.00Hutchinson Technology, Inc. II $1,500,000 $3,740,000 377.00InterActive, Inc. $40,000 $90,000 28.50Labelcrafters of South Dakota, Inc. I $17,500 $43,000 4.00Labelcrafters of South Dakota, Inc. II $20,000 $265,000 4.00LodgeNet Entertainment Corp. $1,000,000 $14,114,364 225.00Lou-Rich, Inc. $91,400 $209,000 24.00Lumber Exchange, LLC $3,500,000 $9,581,700 N/ALuverne Truck Equipment Inc. $400,000 $1,300,000 305.00Maguire Tank, Inc. $175,000 $1,350,000 31.00Marmen Energy Company $5,000,000 $48,000,000 250.00Midwest Precision Tool & Die, Inc. $250,000 $2,589,400 50.00Mitographers, Inc. $175,000 $750,000 28.00Nordic Advantage, Inc. $1,500,000 $3,350,000 300.00Omnitech, Inc $214,650 $477,000 30.00Raven Industries, Inc. II $105,000 $795,000 23.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsMINNEHAHA(Con't)Sencore, Inc. $350,000 $780,000 70.00Sioux Falls Development Foundation $668,250 $1,960,000 132.00SODA Partners, LLC #3 $1,100,000 $2,693,618 85.00SolCom, Inc. $669,000 $2,619,000 100.00Specialized Card Services I $750,000 $2,056,582 150.00Specialized Card Services II $400,000 $1,888,889 170.00Specialized Card Services III $850,000 $889,750 80.00Specialized Card Services IV $1,500,000 $5,992,717 300.00Specialized Card Services V $1,300,000 $5,187,888 260.00StarMark, Inc. $315,000 $700,000 63.00South Eastern Development Foundation $500,000 $500,000 N/ASioux Falls Development Foundation/Foundation Park $8,500,000 $29,000,000 850.00Tel-Drug $1,400,000 $6,200,000 214.00Tiger Corporation $381,600 $954,000 118.00Total Fire Protection, Inc. $300,000 $2,025,000 30.00Tower Properties, LLC* $1,537,500 $4,000,000 65.00Valentine Technology, Inc. $200,000 $1,050,000 75.00Wheeler Tank Manufacturing, Inc. $200,000 $550,000 39.00Wheeler Tank Manufacturing, Inc. II $100,000 $330,000 22.00Yellow Freight System, Inc. $750,000 $2,223,250 127.00

$50,405,286 $214,862,319 6,681.00MOODYDakota Layers Coop. I $400,000 $9,290,000 21.00Dakota Layers Coop II $1,500,000 $4,941,996 40.00

$1,900,000 $14,231,996 61.00PENNINGTONAccuracy Inc. $50,000 $393,000 15.00All-Mark/Claussen, Inc. $76,050 $169,000 53.50American Concrete Equipment Corp. $450,000 $1,440,000 41.00Baker Timber Products, Inc. $250,000 $640,000 31.00Biofoam Corporation $200,000 $750,000 60.50Black Hills Fiberglass, LLC $1,000,000 $3,465,000 36.00Black Hills Molding, Inc. $120,000 $450,000 20.00Black Hills Silver, Inc. $90,000 $221,396 14.00Casto Travel, Inc. $185,000 $405,000 67.00Conseco Fin. Serv. Corp. I $2,000,000 $5,000,000 347.00Conseco Fin. Serv. Corp. II $1,500,000 $5,022,656 225.00Conseco Fin. Serv. Corp. III $250,000 $1,352,590 90.00Custom Packaging Systems, Inc. I $177,500 $685,000 85.00Custom Packaging Systems, Inc. II $100,000 $400,000 20.00Custom Packaging Systems, Inc. III $100,000 $248,000 55.00Custom Packaging Systems, Inc. IV $50,000 $112,000 83.00Dakota Fire Systems, Inc. $225,000 $666,130 15.00Dakota Ventures, Inc. I $50,000 $150,000 N/ADakota Ventures, Inc. II $75,000 $225,000 N/ADeadwood BioFuels, LLC $524,480 $2,700,000 30.00Envirocare, Inc. $40,000 $91,900 34.00Fenske Printing, Inc. $400,000 $1,500,000 42.00GFI America, Inc. I $1,500,000 $10,125,000 235.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsPENNINGTON(Con't.)GFI America, Inc. II $1,000,000 $3,125,000 115.00Gunderson Manufacturing Company $60,000 $160,000 12.00H.F. Webster, Inc. $260,000 $577,000 10.00H-S Precision, Inc. I $175,000 $825,000 42.00H-S Precision, Inc. II $125,000 $300,000 25.00H-S Precision, Inc. III $180,000 $400,000 30.00Hi-Qual Manufacturing, Inc. I $300,000 $1,600,000 43.00Hoag Land Company, LLC $163,000 $923,000 17.00Intrinsic Materials Corp. $594,000 $1,495,442 229.00Intrinsic Materials Corp. (II)* $1,131,750 $2,515,000 34.00Intrinsic Materials Corp. (III)* $2,546,302 $5,658,450 see aboveLandstrom’s $700,000 $9,185,000 140.00Lytleware Enterprises $55,000 $196,000 11.00Magnum Diamond I $80,000 $250,000 11.00Magnum Diamond II $90,000 $208,950 22.00MEMSense, LLC $90,000 $225,000 5.00MPI, Inc. $825,000 $1,871,420 168.00Phase Technologies Partners, LLC $290,000 $1,158,527 27.00Precision Prototype $50,000 $172,600 7.00RIDCO, Inc. $500,000 $1,680,000 103.00Riss Brothers Millwork, Inc. I $100,000 $1,130,000 28.00Riss Brothers Millwork, Inc. II $150,000 $544,000 34.00Riss Brothers Millwork, Inc. III $205,000 $655,000 55.00Risstone Casegoods, Inc. $280,000 $630,000 82.00RMA $72,525 $221,167 77.50SCI Technology, Inc. $1,500,000 $15,203,122 417.00Spiegel Teleservices, Inc. $1,750,000 $7,445,000 360.50Terryberry Company $150,000 $1,350,000 30.00West River Foundation - RRLF $500,000 $500,000 N/AWorkrite Uniform Co. $1,275,000 $7,905,000 124.00

$24,610,607 $104,321,350 3,858.00PERKINSWheeler Manufacturing Co., Inc. $100,000 $311,000 20.00Wheeler Manufacturing Co., Inc. II $150,000 $350,000 30.00

$250,000 $661,000 50.00ROBERTSCattail Company, LLP $150,000 $1,050,000 33.00Cattail Company, LLP II $2,000,000 $6,800,000 82.00Cattail Company, LLC III $441,900 $1,914,238 60.00One-Ten Corporation $250,000 $1,768,000 210.00Northeast SD Economic Development $500,000 $500,000 N/ASchiltz Foods, Inc. $323,541 $718,980 73.00Sisseton Development Company/Connectino $400,000 $901,133 120.00Sisseton Econ. Dev./Power Sentry $290,277 $290,277 N/A

$4,355,718 $13,942,628 578.00SANBORNDak-Pak, LLC* $1,080,000 $2,400,000 53.00Van Dyke Supply Company, Inc. $1,000,000 $1,000,000 100.00

$2,080,000 $3,400,000 153.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsSPINKMarkley Millwork $65,000 $420,000 13.00Redfield Industrial Dev. Corp./ACI $355,000 $605,000 75.00

$420,000 $1,025,000 88.00TODDRosebud Community Landfill $22,500 $111,000 4.00

$22,500 $111,000 4.00TURNERBowden’s Automated Products $100,000 $300,000 50.00ProCon Products, Inc. $20,000 $64,149 4.00

$120,000 $364,149 54.00UNION2400 North Lincoln Management Corp. $315,000 $700,000 89.00AaLadin Industries, Inc. I $43,000 $175,183 34.00AaLadin Industries, Inc. II $205,000 $603,740 41.00Alkota Cleaning Systems, Inc. $200,000 $621,000 25.00Beef Products, Inc. $200,000 $2,391,814 33.00Brown Commercial Construction Co. $440,000 $980,000 15.00CSJ Properties, LLC $100,000 $445,000 8.00Direct Transit, Inc. I $200,000 $677,081 49.00Direct Transit, Inc. II $500,000 $2,524,000 173.00Enviro Safe Air, Inc. $120,000 $300,000 24.50Gateway, Inc. I $700,000 $8,697,051 245.00Gateway, Inc. II $250,000 $1,242,715 154.00Gateway, Inc. III $1,000,000 $11,000,000 1213.00Heartland Quality Foods/IAMS Co., Inc. $357,500 $4,200,000 62.00ibp, Inc. I $800,000 $3,100,000 100.00ibp, Inc. II $3,000,000 $25,100,000 578.00JMo Holdings, LLC* $3,600,000 $8,000,000 50.00Manitex Load King $1,012,500 $2,610,000 28.00MDMT, Inc. $320,000 $1,000,000 39.00Prince Manufacturing Corporation $400,000 $3,935,000 50.00Red's All Natural, LLC $2,133,276 $4,740,613 40.50Southeast Farmers Elevator $750,000 $4,818,000 6.50Steck Wholesale Foods, Inc. $450,000 $1,800,000 20.00The Three Amigos, LLC* $654,433 $1,636,081 27.00Tower Engineering $55,000 $265,000 12.00Tristate Laminated Doors/Components $150,000 $1,200,000 37.00

$17,955,709 $92,762,278 3,153.50WALWORTHBlaze Technologies, Inc. $40,000 $66,700 8.00DMCO, Inc. $36,000 $145,000 7.00Mobridge Economic Dev. Corp. $290,000 $780,000 150.00One World Distribution, Inc. $148,000 $330,000 51.00

$514,000 $1,321,700 216.00


REDI Fund Company Activity ProjectedCompany Total Loan Total Project FTE(County in Bold) Amount Amount JobsYANKTONApplied Engineering, Inc. $250,000 $1,600,000 39.00Areawide Business Council – RRLF $500,000 $500,000 N/ADakota Real Properties, LLC $563,705 $2,304,823 32.00Ehresmann Engineering, Inc. $125,000 $350,000 15.00Excelltech, Inc. $81,000 $182,000 14.00Fiedler Holdings, LLC* $1,152,338 $2,560,750 26.00Hastings Manufacturing $500,000 $1,576,000 55.00M-Tron $296,000 $1,200,000 126.00Shur Company I $255,000 $940,685 48.00Shur Company II $150,000 $533,204 30.00Shur Company III $240,000 $646,400 50.50Summit Precision, Inc. $500,000 $2,330,000 85.00Wentz Commercial Properties, LLC $397,000 $1,588,000 17.00Yankton Area Progressive/L&M Radiator (I) $830,000 $2,261,497 53.00Yankton Area Progressive/L&M Radiator(II) $924,525 $2,239,940 105.00

$6,764,568 $20,813,299 695.50

FY 1987-2018GRAND TOTAL: $263,491,965 $1,290,059,555 33,210.75


NOTE: Totals only include loans approved and funded. All loans approved, but never funded (and officially withdrawn) are listed separately on the following pages.


Withdrawn Loans ProjectedTotal Loan Total Project FTE

Amount Amount JobsCompanyAberdeen Development Corporation IV $1,500,000 $6,300,000 125.00Acquistion Group III, LLC* $3,099,384 $9,633,845 201.00Acrylics by Jane of SD Inc. $170,000 $600,000 31.50Adams Holding, LLC II $2,000,000 $4,500,000 50.00Anderson Seed Co., Inc. $256,650 $3,374,218 22.00Applied Engineering, Inc. (II)* $1,122,600 $2,494,670 6.00APA Optics, Inc. $300,000 $6,375,000 106.00Bar -Sto Precision Machine $175,000 $389,500 18.00BioChem Building Applications #1 $300,000 $1,200,000 25.00Bioverse, Inc. $200,000 $620,000 27.00Bell Farms, LLP $500,000 $3,000,000 8.00Cimpl Meats, Inc. $200,000 $700,000 8.00CJ Stengel, Inc. $200,000 $1,341,425 4.00Clark Area New Horizons, LLC $765,000 $1,700,000 78.00CoEv, Inc. $1,250,000 $4,120,000 249.00Conseco Fin. Serv. Corp. IV $1,000,000 $3,566,000 200.00CoSentry Dakotas, LLC $100,000 $326,525 9.00Dakota Machine Service, Inc. $70,000 $180,000 11.00Davisco Int. Inc $262,000 $9,517,000 63.00Dayton Rogers Manufacturing $750,000 $4,502,964 90.00DeSCo Architectural, Inc $75,000 $75,000 31.00Dove Performance Parts, Inc. $180,000 $400,000 32.50Doyle Family Land Company, LLC $1,755,000 $3,900,000 33.00EMI Properties, LLC $898,450 $3,606,282 27.00EMPI Inc. $450,000 $1,100,000 175.50EPS Technologies $213,750 $213,750 144.00EPS Technologies $225,000 $225,000 144.00Faultless Nutting, Inc. $450,000 $1,000,000 250.00FIMCO, Inc. $575,000 $9,357,024 83.25Front Line Chemical, LLC $150,000 $510,000 16.00Gage Brothers Concrete Products, Inc. $2,500,000 $30,500,000 48.00Hansen Manufacturing Corp. $5,000,000 $18,442,371 50.00Hilton Development Corporation $350,000 $6,190,000 37.75Hi-Qual Manufacturing, Inc. II $500,000 $2,000,000 58.00Integra Plastics, Inc. V $1,170,000 $2,900,000 30.00Integrity Meats $125,000 $500,000 24.00Intercity Holding Co $225,000 $500,000 N/AJMo Holdings, LLC $1,125,000 $2,500,000 57.00Jack First Inc. $31,500 $70,000 13.00LSI, Inc. III $1,200,000 $9,408,940 75.00Lund Industries, Inc. $1,000,000 $1,000,000 155.00Marquardt Transportation $100,000 $315,859 179.00MFS Partnership (Entreprenuer Support Fund) $50,000 $50,000 N/AMicro-Voice, Inc. $162,000 $410,000 18.00Minnkota Fisheries, Inc. $75,000 $302,500 15.00MPI $500,000 $500,000 100.00MSD Woodworking Company $32,500 $113,000 18.00Muller Industries, Inc. $150,000 $554,000 30.00NE Venture, Inc. III $200,000 $600,000 41.00NewCo, LLC $300,000 $2,000,000 36.00Northern Beef Packers Limited Partnership $5,000,000 $124,699,322 566.00Northland Laboratories $100,000 $195,000 30.00

ProjectedCompany Total Loan Total Project FTE

Amount Amount Jobs

Nutraferma, Inc. $1,000,000 $10,000,000 34.00Paytrust, Inc. $1,000,000 $4,044,000 203.00Pierre Economic Dev. Corp./SD Pulse Processors $360,000 $800,000 27.00Portfolio Analysis Systems, Inc $100,000 $650,000 34.00PPD USA, Inc. $500,000 $500,000 166.00Rapid City Economic Dev Foundation $850,000 $2,000,000 99.00RBE Electronics $495,000 $1,100,000 125.00Ridgefield Farms of South Dakota $3,000,000 $40,750,000 272.00RKG, Inc. $150,000 $585,000 46.00RMA, Inc. $72,525 $221,167 133.50R & R Holdings, LLC $900,000 $2,000,000 40.00Rosenbauer South Dakota, LLC $990,000 $2,628,411 30.00Satern Properties, LLC $247,500 $550,000 27.00Schnell Welding & Machine $14,000 $40,000 9.50Sentra@NET, LLC $250,000 $1,180,000 40.00Sheldahl, Inc. $500,000 $2,250,000 147.50Shoemaker Properties, LLC $343,312 $4,595,357 20.00Showplace Wood Products, Inc. $4,185,000 $9,500,000 168.00South Dakota Wheat Growers Assoc. $1,400,000 $7,125,000 21.00Special Teams, Inc. $350,000 $600,000 62.00SpecSys, Inc. $350,000 $5,900,000 30.00Synergy Solutions, Inc. $200,000 $461,400 50.00TCF & Blower Companies, Ltd. $300,000 $3,300,000 N/ATCF & Blower Companies, Ltd. $400,000 $1,315,000 N/ATDS Dakota Land Holdings, LLC $1,750,000 $7,567,000 287.00Telnet Systems, Inc $250,000 $677,000 225.00Tower Tech Systems, Inc. $1,500,000 $23,990,000 145.00Tri-State Ethanol Company $450,000 $18,000,000 19.00Tri-State Ethanol Company $450,000 $18,000,000 25.00Twin City Fan Companies, Ltd $616,950 $1,371,000 50.00Ultimate Direction, Inc $50,000 $357,000 N/AVallon Inc. $430,000 $2,308,555 91.00Vermillion Area COC and EDC $2,100,000 $5,150,000 125.00Vermillion Area COC and EDC/IP USA* $1,696,500 $3,768,000 54.00WhBMC Group, Inc $226,250 $512,500 46.00Watertown Development Corp./Dakota Bodies (VI) $359,450 $1,700,000 30.00Watertown Dev. Co./Focus Watertown $450,000 $1,000,000 13.00Webster Area Dev. Corp./Anderson Ind. $200,000 $563,500 16.00Wilson Trailer Sales, Inc. $3,000,000 $12,350,000 138.00Workrite Uniform Company $225,000 $225,000 N/ATotal Withdrawn Loans $70,800,321 $488,214,085 6,897.00

*Withdrawn Subsequent to Year End

SOUTH DAKOTA REVOLVING ECONOMIC DEVELOPMENT AND INITIATIVE FUND

AUDIT REPORT

Fiscal Year Ended June 30, 2018

State of South Dakota

Department of Legislative Audit

427 South Chapelle c/o 500 East Capitol

Pierre, SD 57501-5070

SOUTH DAKOTA REVOLVING ECONOMIC DEVELOPMENT AND INITIATIVE FUND TABLE OF CONTENTS

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.......................... 1 Independent Auditor's Report ................................................................................ 3 Financial Statements: Statement of Net Position ................................................................................ 5 Statement of Revenues, Expenses and Changes in Net Position .................... 6 Statement of Cash Flows................................................................................. 7 Notes to the Financial Statements ......................................................................... 8

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Dennis Daugaard Governor of South Dakota and South Dakota Board of Economic Development We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the South Dakota Revolving Economic Development and Initiative Fund (REDI Fund), an enterprise fund of the State of South Dakota, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the REDI Fund’s basic financial statements and have issued our report thereon dated September 28, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered South Dakota Board of Economic Development's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of South Dakota Board of Economic Development's internal control. Accordingly, we do not express an opinion on the effectiveness of South Dakota Board of Economic Development's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any

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deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether South Dakota Board of Economic Development's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal

control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,

this communication is not suitable for any other purpose. As required by South Dakota Codified Law 4-11-11, this report is a matter of public record and its distribution is not limited.

Martin L. Guindon, CPA Auditor General September 28, 2018

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INDEPENDENT AUDITOR’S REPORT

The Honorable Dennis Daugaard Governor of South Dakota

and

South Dakota Board of Economic Development

Report on the Financial Statements

We have audited the accompanying financial statements of the South Dakota Revolving Economic Development and Initiative Fund (REDI Fund), an enterprise fund of the State of South Dakota, as of and for the year ended June 30, 2018, and the related notes to the financial statements, as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the REDI Fund, an enterprise fund of the State of South Dakota, as of June 30, 2018, and the changes in its financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 1, the financial statements present only the REDI Fund and do not purport to, and do not, present fairly the financial position of the State of South Dakota, as of June 30, 2018, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the REDI Fund’s basic financial statements. The listing of the Board of Economic Development Members and the schedules of Loan Portfolio: Loans Approved Fiscal Year 2018, REDI Fund Company Activity and Withdrawn Loans are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 28, 2018 on our consideration of the South Dakota Board of Economic Development’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the South Dakota Board of Economic Development’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering South Dakota Board of Economic Development’s internal control over financial reporting and compliance.

Martin L. Guindon, CPA Auditor General

September 28, 2018

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SOUTH DAKOTA REVOLVING ECONOMIC DEVELOPMENTAND INITIATIVE FUND

STATEMENT OF NET POSITIONJune 30, 2018

ASSETSCurrent Assets: Cash and Cash Equivalents (Note 2.C.) 75,259,933$ Accounts Receivable – Bankwest 7,431 Loan Interest Receivable 35,390 Investment Income Receivable 298,517 Loans Receivable (Net) (Note 2.E.) 8,826,848 Total Current Assets 84,428,119

Noncurrent Assets: Restricted Net Pension Asset 1,514 Noncurrent Portion of Loans Receivable (Net) (Note 2.E.) 30,435,938 Total Noncurrent Assets 30,437,452

TOTAL ASSETS 114,865,571

DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows of Resources-Related to Pensions 162,747 TOTAL DEFERRED OUTFLOWS OF RESOURCES 162,747

LIABILITIESCurrent Liabilities: Accounts Payable 12,195 Wages Payable 22,291 Accrued Leave Liability (Note 5) 12,676 Due to Other Funds 8,003 Total Current Liabilities 55,165

Noncurrent Liabilities: Noncurrent Portion of Accrued Leave Liability (Note 5) 11,200 Total Noncurrent Liabilities 11,200

TOTAL LIABILITIES 66,365

DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources-Related to Pensions 29,509 TOTAL DEFERRED INFLOWS OF RESOURCES 29,509

NET POSITION Restricted for South Dakota Jobs Grant Program 1,978,039 Restricted for Pension Benefits 134,752 Unrestricted 112,819,653

TOTAL NET POSITION 114,932,444$

The notes to the financial statements are an integral part of this statement.

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STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFor the Fiscal Year Ended June 30, 2018

Operating Revenue: Interest Income on Loans 768,185$ Other Income 59,172 Total Operating Revenue 827,357 Operating Expenses: Personal Services and Benefits 152,911 Travel 5,437 Contractual Services 246,071 Supplies and Materials 22,258 Grants and Subsidies 96,345 Total Operating Expenses 523,022

Operating Income 304,335

Nonoperating Revenue (Expenses): Investment Income 189,811 Services Provided to Others (Note 2.F.) (190,263) Other Expenses (14,742) Total Nonoperating Revenue (Expenses) (15,194)

Income Before Transfers 289,141

Transfers: Transfers In – Building South Dakota (Note 2.H.) 87,462 Total Transfers 87,462

Change in Net Position 376,603

Beginning Net Position 114,555,841 End of Year Net Position 114,932,444$


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Cash Flows From Operating Activities: Receipts for Loan Repayments 4,293,439$ Payments for Loans Originated (5,713,692) Receipts from Customers and Users 59,172 Grants and Subsidies - Building South Dakota Funds (96,345) Payments for Employee Services and Benefits (218,819) Payments for Interfund Services Used (60,053) Payments to Suppliers and for Claims (212,972) Net Cash Provided (Used) by Operating Activities (1,949,270)

Cash Flows From Noncapital Financing Activities: Transfers In – Building South Dakota Funds 87,462 Services Provided to Others (190,263) Net Cash Provided (Used) by Noncapital Financing Activities (102,801)

Cash Flows From Investing Activities: Pooled Investment Income 145,458 Investment Costs (14,742) Net Cash Provided (Used) by Investing Activities 130,716

Net Decrease in Cash and Cash Equivalents During the Fiscal Year (1,921,355)

Cash and Cash Equivalents at Beginning of Year 77,181,288 Cash and Cash Equivalents at End of Year 75,259,933$

Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 304,335$

Decrease/(Increase) in Assets: Loans Receivable (2,203,338) Loan Interest Receivable (5,996) Accounts Receivable – Bankwest 20,896 Net Pension Asset (1,514)

Decrease/(Increase) Deferred Outflows of Resources: (34,240)

Increase/(Decrease) in Liabilities: Accounts Payable 1,017 Wages Payable (5,151) Net Pension Liability (52,408) Accrued Leave Liability (1,246) Due to Other Funds (276)

Increase/(Decrease) Deferred Inflows of Resources: 28,651

Total Adjustments (2,253,605) Net Cash Provided (Used) by Operating Activities (1,949,270)$



STATEMENT OF CASH FLOWSFor the Fiscal Year Ended June 30, 2018

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SOUTH DAKOTA REVOLVING ECONOMIC DEVELOPMENT AND INITIATIVE FUND

NOTES TO THE FINANCIAL STATEMENTS June 30, 2018

1. AUTHORIZING LEGISLATION The South Dakota Revolving Economic Development and Initiative Fund (REDI Fund) was

created in 1987 by an act of the South Dakota Legislature. The REDI Fund was established for the purpose of making loans for economic development. The REDI Fund is a fund of the State of South Dakota and is administered by the Governor’s Office of Economic Development (GOED) with oversight provided by the Board of Economic Development.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Fund Accounting

The REDI Fund is accounted for as an enterprise fund. Enterprise funds are used to account for activities that are financed and operated in a manner similar to private business enterprises. The REDI Fund is a part of the State of South Dakota and, as such, the accompanying financial statements are included in the Comprehensive Annual Financial Report of the State of South Dakota.

B. Basis of Accounting The REDI Fund follows the accrual basis of accounting. This method of accounting

recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Revenues and expenses not meeting this definition, such as investment earnings and services provided to others, are reported as nonoperating.

C. Cash and Investments

Cash includes cash on hand and a participating interest in the State’s internal investment pool held by the State Treasurer and is used for the purposes of reporting cash flows. The amount held in the State’s internal investment pool is reported at fair value. Management of the State’s internal investment pool is the statutory responsibility of the South Dakota Investment Council (SDIC). The investment policy and required risk disclosures for the State’s internal investment pool are presented in the SDIC’s audit report which can be obtained by writing to the Department of Legislative Audit, 427 South Chapelle, c/o 500 East Capitol, Pierre, South Dakota 57501 or by calling (605)773-3595.

D. Capital Assets

Assets are capitalized based on policies established by the South Dakota Bureau of Finance and Management. Capital assets are capitalized at cost or estimated historical

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cost, if the original cost is unavailable. Equipment is capitalized when the cost of individual items is $5,000 or more. Depreciation on capital assets is computed using the straight line method over the estimated useful lives of the assets, which is 3 to 10 years for all assets. When assets are disposed of, the costs and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in the results from operations in the period of disposal. The REDI Fund had no depreciable assets for the year ending June 30, 2018.

E. Loans Receivable

Loans receivable at June 30, 2018, is shown net of the allowance for doubtful loans of $875,941.

F. Services Provided to Others

Earnings on the REDI Fund may be used for the administrative costs of the Division of

Finance of the GOED per SDCL 1-16G-24. Earnings used for the administrative costs of the Division of Finance of the GOED totaled $190,263 for the year ending June 30, 2018.

G. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates.

H. Transfers

The legislature designated contractor’s excise taxes and interest from Building South Dakota projects costing $20 million or more to be transferred to the Building South Dakota Funds per the 2013 legislative session. An amount of $87,462 was transferred in for the year ending June 30, 2018 for the South Dakota Jobs portion of the designated funds.

I. Pension Reporting

For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension revenue, information about the fiduciary net position of the South Dakota Retirement System (SDRS) and additions to/deletions from SDRS’s fiduciary net position have been determined on the same basis as they are reported by SDRS. Contributions and net pension asset are recognized on an accrual basis of accounting.

J. Net Position

Net Position is classified in the following three components: • Net investment in capital assets – This component consists of capital assets, net

of accumulated depreciation, reduced by the outstanding balances of any debt that is attributable to the acquisition, construction or improvement of those assets.

• Restricted – Consists of net position with constraints placed on their use by either creditors, grantors, contributors, laws or regulations of other governments,

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or constraints imposed by law through constitutional or enabling legislation of the State.

• Unrestricted – Consists of net position that does not meet the definition of net investments in capital assets or restricted.

K. Restricted Resources When both restricted and unrestricted resources are available for use, it is the REDI

Fund’s policy to use restricted resources first, and then unrestricted resources as they are needed.

3. SOUTH DAKOTA JOBS GRANT PROGRAM ACTIVITY

During the 2013 legislative session, the South Dakota Jobs Grant Program was created within the REDI Fund. An original deposit of $350,000 was deposited in the fiscal year ending June 30, 2013. The Board of Economic Development may provide grants to project owners for new or expanded facilities with project costs less than $20,000,000 or for equipment upgrades with project costs less than $2,000,000.

The following is a breakdown of the activity in the subfund for fiscal year 2018 and its corresponding restricted net position at June 30, 2018:

South Dakota Jobs Subfund Beginning Net Position $ 1,964,443 Transfer in – Building South Dakota 87,462 Investment Income 22,479 Grant Expense (96,345) Ending Net Position $ 1,978,039

4. COMMITMENTS At June 30, 2018, the REDI Fund had the following commitments:

REDI Fund loans approved by the South Dakota Board of Economic Development but not disbursed at June 30, 2018 $ 26,003,803

5. ACCRUED LEAVE LIABILITY Annual leave is earned by all employees. Upon termination, employees are eligible to

receive compensation for their accrued annual leave balances. Employees who have been continuously employed by the State of South Dakota for at least seven years prior to the date of their retirement, voluntary resignation, or death will receive payment for one-fourth of their accumulated sick leave balance, such payment not to exceed the sum of twelve weeks of employee’s annual compensation. The total leave liability of $23,876 at June 30, 2018, is shown as short and long-term liabilities on the Statement of Net Position.

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Beginning Ending Due Within Balance Additions Deletions Balance One Year

Accrued Leave Liability $ 25,121 $ 30,738 $ 31,983 $ 23,876 $ 12,676

6. RETIREMENT The GOED participates in the South Dakota Retirement System (SDRS), a cost-sharing,

multiple-employer defined benefit pension plan established to provide retirement, disability, and survivor benefits for employees of the State and its political subdivisions. Authority for establishing, administering, and amending plan provisions is found in SDCL 3-12. The SDRS issues a publicly available financial report that includes financial statements, footnote disclosures, and required supplementary information for the plan. That report may be obtained by writing to the SDRS, P.O. Box 1098, Pierre, SD 57501-1098 or by calling (605)773-3731. Additionally, the State of South Dakota’s Comprehensive Annual Financial Report (CAFR) will report the State’s proportionate share of the plan. The CAFR can be obtained by writing to the Department of Legislative Audit, 427 South Chapelle, c/o 500 East Capitol, Pierre, South Dakota 57501 or by calling (605)773-3595.

State law requires employees to contribute 6 percent of their salary to the plan and the employer to contribute an amount equal to the employee’s contribution. The right to receive retirement benefits vests after three years of credited service. The GOED’s contributions to the SDRS for the fiscal years ended June 30, 2018, 2017, and 2016 were $19,276, $21,585, and $18,967, respectively, equal to the required contributions each year. At June 30, 2017, SDRS is 100.1% funded and accordingly has a net pension asset. At June 30, 2018, the GOED reported an asset of $1,514 for the REDI Fund’s proportionate share of the net pension asset. At June 30, 2018, deferred outflows of resources and deferred inflows of resources related to the pension were reported from the following sources: Deferred

Outflows of Resources

Deferred Inflows of Resources

Difference between expected and actual experience $ 24,261 $ Changes of assumption 117,563 Net difference between projected and actual

Investment earnings on pension plan investments 29,111 Contribution after the measurement date 18,254

Changes in proportionate share 2,669 398 Total $ 162,747 $ 29,509

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7. RISK MANAGEMENT

The GOED is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The GOED participates in the various programs administered by the State of South Dakota. These risk management programs are funded through assessments charged to participating entities. The risk management programs include: 1) coverage for risks associated with automobile liability and general tort liability (including public officials’ errors and omissions liability, medical malpractice liability, law enforcement liability, and products liability) through the State’s Public Entity Pool for Liability Fund, 2) coverage of employee medical claims through the State’s health insurance program, 3) coverage for unemployment benefits through the State’s Unemployment Insurance Fund, 4) coverage for workers’ compensation benefits through the State’s Workers’ Compensation Fund, and 5) coverage for property loss through the South Dakota Property and Casualty Insurance Company, LLC. Financial information relative to the self-insurance funds administered by the State is presented in the State of South Dakota Comprehensive Annual Financial Report.

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711 EAST WELLS AVENUE, PIERRE, SOUTH DAKOTA 57501

605-773-GOED • WWW.SDREADYTOWORK.COM

south dakota redi fund - boardsandcommissions.sd.gov

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